Foreign BFSI companies drove India’s GCC office leasing to a record 7.32 million sq. ft. in H1 2026. The sector accounted for 36% of total GCC leasing across eight cities. Meanwhile, demand in IT-ITeS and manufacturing moderated, highlighting a broader shift toward a more diversified GCC ecosystem.
India’s Global Capability Centre (GCC) market is entering a new phase, with foreign banking, financial services and insurance (BFSI) companies emerging as its biggest office occupiers. These firms leased a record 7.32 million sq. ft. across eight major Indian cities during the first half of 2026, according to Knight Frank India.
The figure marks a 70% year-on-year jump from 4.31 million sq. ft. in H1 2025. BFSI companies also accounted for 36% of the total 20.6 million sq. ft. of GCC leasing recorded across Mumbai, Delhi-NCR, Bengaluru, Pune, Hyderabad, Chennai, Ahmedabad and Kolkata.
GCC Demand Moves Beyond Technology
The latest numbers point to a clear change in India’s office demand mix. While technology companies have traditionally been at the heart of the GCC story, foreign IT-ITeS firms leased 4.13 million sq. ft. in H1 2026, down 28% from 5.71 million sq. ft. a year earlier.
Knight Frank India said the market is undergoing a structural shift, with GCC demand diversifying beyond traditional technology occupiers. Viral Desai, International Partner and Senior Executive Director at Knight Frank India, said, “The 70 per cent year-on-year surge in BFSI-led GCC transactions underscores the sector’s growing appetite for high-quality office spaces.”
For the flexible office sector, this diversification could create new opportunities. BFSI companies often require secure, technology-enabled, high-specification workplaces, supporting demand for managed offices, flexible expansion space, and premium business districts.
Services Sector Adds to the Momentum
Demand from other service companies also strengthened during the period. Office leasing by this segment increased to 5.10 million sq. ft. from 4.41 million sq. ft. in H1 2025, suggesting that GCC growth is spreading across a wider range of business functions.
Desai described the moderation in IT/ITeS absorption as a period of recalibration, with occupiers realigning their global strategies. He added, “BFSI emerging as a key driver of office space demand in 2026”, reinforcing the sector’s growing importance to India’s commercial real estate market.
At the same time, global manufacturing companies leased 4.05 million sq. ft., compared with 4.67 million sq. ft. in the year-ago period. The decline suggests that GCC expansion is becoming less dependent on any single industry.
Emerging Markets Could Gain
The next phase of growth could extend beyond India’s established GCC hubs. Accuspace Managing Director Mukesh Choudhary said, “India’s GCC ecosystem is entering a decisive phase of expansion, with state-level policies, skilled workforce, incentives and infrastructure commitments creating a strong pipeline of new centres and employment.”
For landlords, developers, REITs, and flexible workspace operators, this creates a potentially broader pool of demand. Established markets such as Bengaluru, Hyderabad and Mumbai are likely to remain important, but emerging locations could attract new GCC activity as companies seek talent, infrastructure and cost advantages.
The bigger takeaway is that India’s GCC office market is not slowing—it is changing shape. With BFSI taking the lead and services adding depth, the demand story is becoming broader, more resilient and increasingly relevant for the entire flexible and commercial office ecosystem.
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